Correlation Between Astellas Pharma and SANOK RUBBER
Can any of the company-specific risk be diversified away by investing in both Astellas Pharma and SANOK RUBBER at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Astellas Pharma and SANOK RUBBER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astellas Pharma and SANOK RUBBER ZY, you can compare the effects of market volatilities on Astellas Pharma and SANOK RUBBER and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Astellas Pharma with a short position of SANOK RUBBER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astellas Pharma and SANOK RUBBER.
Diversification Opportunities for Astellas Pharma and SANOK RUBBER
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astellas and SANOK is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Astellas Pharma and SANOK RUBBER ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANOK RUBBER ZY and Astellas Pharma is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Astellas Pharma are associated (or correlated) with SANOK RUBBER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANOK RUBBER ZY has no effect on the direction of Astellas Pharma i.e., Astellas Pharma and SANOK RUBBER go up and down completely randomly.
Pair Corralation between Astellas Pharma and SANOK RUBBER
Assuming the 90 days trading horizon Astellas Pharma is expected to under-perform the SANOK RUBBER. But the stock apears to be less risky and, when comparing its historical volatility, Astellas Pharma is 2.05 times less risky than SANOK RUBBER. The stock trades about -0.12 of its potential returns per unit of risk. The SANOK RUBBER ZY is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 341.00 in SANOK RUBBER ZY on September 12, 2024 and sell it today you would earn a total of 99.00 from holding SANOK RUBBER ZY or generate 29.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Astellas Pharma vs. SANOK RUBBER ZY
Performance |
| Timeline |
| Astellas Pharma |
| SANOK RUBBER ZY |
Astellas Pharma and SANOK RUBBER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astellas Pharma and SANOK RUBBER
The main advantage of trading using opposite Astellas Pharma and SANOK RUBBER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astellas Pharma position performs unexpectedly, SANOK RUBBER can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SANOK RUBBER will offset losses from the drop in SANOK RUBBER's long position.| Astellas Pharma vs. GRUPO CARSO A1 | Astellas Pharma vs. JJ SNACK FOODS | Astellas Pharma vs. CN MODERN DAIRY | Astellas Pharma vs. Commercial Vehicle Group |
| SANOK RUBBER vs. Bridgestone | SANOK RUBBER vs. Superior Plus Corp | SANOK RUBBER vs. SIVERS SEMICONDUCTORS AB | SANOK RUBBER vs. Norsk Hydro ASA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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